Vietnamese credit institutions

Viet Nam News HÀ NỘI - The total assets of Vietnamese credit institutions rose more than 16 per cent by December 2016 to VNĐ8.5 quadrillion (US$374 billion), when compared with early 2016, the State Bank of Việt Nam reported. According to the report, assets of all kinds of credit institutions in September rose, of which finance companies posted the highest growth of 30 per cent in the year to VNĐ114.37 trillion. The central bank attributed the rise in the assets of the finance companies to an acceleration in consumer lending and the establishment of many finance companies last year. State-owned commercial banks and joint stock commercial banks both reported a growth of 17 per cent in assets to VNĐ3.86 quadrillion and VNĐ3.42 quadrillion. Assets of joint venture and foreign banks in the year also rose nearly 10 per cent to VNĐ828.322 trillion. However, among the total assets, State-owned commercial banks accounted for the largest amount with more than 45 per cent. Joint stock … [Read more...] about Assets of credit institutions rose 16% in 2016

Viet Nam News HÀ NỘI - Assets of Vietnamese credit institutions in September rose significantly by more than VNĐ198 trillion (US$8.8 billion) month-on-month thanks to a better performance, a State Bank of Việt Nam report showed. Total assets increased to more than VNĐ8 quadrillion ($359 billion) by the end of the month. Compared with the end of last year, total assets increased 10.55 per cent. According to the new report, assets of all kind of credit institutions in September rose, of which State-owned commercial banks posted the highest growth of VNĐ94.5 trillion to more than VNĐ3.7 quadrillion. Joint stock commercial banks followed with a rise of VNĐ70.4 trillion to more than VNĐ3.2 quadrillion. After reporting a decline of VNĐ15.4 trillion in August, assets of joint venture foreign invested banks rose again in September by VNĐ26.4 trillion to VNĐ826.8 trillion. In September, charter capital of all credit institutions also rose sharply by VNĐ6.8 trillion month-on-month to more … [Read more...] about Total assets of credit institutions exceed $359.6 billion

Foreign strategic investors are set for a breakthrough in their long desired wish to have greater stakes in Vietnamese credit institutions. Under the existing Decree 69, foreign strategic ownership is capped at 15 per cent of a local bank's chartered capital. Pursuant to the State Bank's proposal, the prime minister will consider allowing the investor to raise its ownership to 20 per cent on a case-by-case basis. The proposal, if approved by Prime Minister Nguyen Tan Dung, means Deutsche Bank, for instance, just needs to go through the central bank if it wants to expand its interest in Habubank from 10 to 20 per cent. The draft decree is silent on conditions for purchasing less than a 5 per cent stake, while presenting a list of conditions for purchasing a 5 per cent stake or more. This indicates administrative procedures for obtaining less than 5 per cent ownership are cut. Lawyers said the moves reflected the central bank's attempt to ease the administrative burdens associated … [Read more...] about Bigger slice of credit institution pie for foreign appetites

Hanoi (VNA) - The total assets of Vietnamese credit institutions rose more than 16 percent by December 2016 to 8.5 quadrillion VND (374 billion USD), when compared with early 2016, the State Bank of Vietnam reported. According to the report, assets of all kinds of credit institutions in September rose, of which finance companies posted the highest growth of 30 percent in the year to 114.37 trillion VND. The central bank attributed the rise in the assets of the finance companies to an acceleration in consumer lending and the establishment of many finance companies last year. State-owned commercial banks and joint stock commercial banks both reported a growth of 17 percent in assets to 3.86 quadrillion VND and 3.42 quadrillion VND. Assets of joint venture and foreign banks in the year also rose nearly 10 percent to 828.322 trillion VND. However, among the total assets, State-owned commercial banks accounted for the largest amount with more than 45 percent. Joint stock commercial banks … [Read more...] about Assets of credit institutions rise 16 percent in 2016

The government has issued guidelines for the purchase of shares in Vietnamese credit institutions by foreign investors and their sale by these institutions through Decree No 01/2014/ND-CP (January 3, 2014).
The decree stipulates the regulations for buying and owning shares in these institutions by foreign investors and the terms and conditions of their sale to them by Vietnamese credit institutions. It also states that the Vietnamese dong will be the currency of transactions between foreign investors and the credit institutions. Foreigners governed by decree The definition of foreign investors will include foreign organisations and individuals. Foreign organisations will include organisations established and operating under the laws of a foreign country and branches of these organisations overseas or in Viet Nam and organisations, closed-ended funds, members funds or securities investment companies established and operating in Viet Nam, with a foreign capital of more than 49 per … [Read more...] about New rules set for foreign investment in credit institutions

The State Bank of Viet Nam (SBV) issued Circular No. 36/2015/TT-NHNN (December 31) on the restructuring of credit institutions. This Circular only applies to commercial banks, financial companies, organisations and individuals related to the restructuring of credit institutions. The Circular focuses on requirements, documents and procedures for mergers and consolidation and conversion of business types of credit institutions. It takes effect on March 1, 2016.
Cases of restructuring of credit institutions
1. Mergers of credit institutions
(1) Commercial bank or finance company is merged into another commercial bank;
(2) Financial company is merged into another financial company.
2. Consolidation of credit institutions
(1) Two commercial banks consolidate to become commercial bank;
(2) Commercial bank and finance company consolidate to become commercial bank;
(3) Financial company and financial company consolidate to become financial company.
3. Conversion of business types of … [Read more...] about Rules on restructuring credit institutions updated

HA NOI (VNS)— DongA Bank and the Viet Nam Prosperity Commercial Bank (VPBank) received Excellence Awards for Straight Through Processing (STP) from the Bank of New York Mellon (BNY Mellon). The STP Award, granted every year by BNY Mellon, acknowledges outstanding payment processing performance. The Bank of New York Mellon Corporation is an American multinational banking and financial services corporation formed in 2007 by a merger between the Bank of New York and Mellon Financial Corporation. … [Read more...] about Vietnamese credit institutions receive Bank of Mellon awards

VietNamNet Bridge – On February 19 Viet Nam Maritime Joint Stock Bank (MaritimeBank) sold 64.2 million shares of Military Bank (MB), accounting for 4 per cent of the military-owned lender’s registered capital.
The buyers were a group of investors from Dragon Capital Fund. Viet Nam Investment Fund Management Company (VEIL) bought 25.2 million shares while Amersham Industries Limited and Norges Bank bought 13.58 million and 25.5 million shares.
The move helped MaritimeBank pare its ownership of MB to 4.96 per cent, bringing it within the central bank’s ownership cap of 5 per cent.
The deal was worth an estimated VND1 trillion (US$44.8 million), a windfall profit for the bank.
Earlier the Import and Export Joint Stock Bank (Eximbank) suddenly sold 300 million shares of Sacombank, reducing its ownership in the latter from 9.6 per cent to 8.76 per cent.
Eximbank plans to sell more shares to cut its ownership to less than 5 per cent.
The cross-ownership in the … [Read more...] about Credit institutions reduce cross-ownership

The year 2015 was an important milestone in Viet Nam's international economic integration with two significant events: establishment of the ASEAN Economic Community (AEC) and wrapping up the Trans-Pacific Partnership (TPP) negotiations. Viet Nam News reporter Ngoc Bich talks with the State Bank of Viet Nam's Governor Le Minh Hung about the opportunities and challenges that the banking system will face in the near future.How do you see the opportunities that TPP and AEC will offer to the Vietnamese banking sector?In terms of openness and trade liberalisation, the AEC establishment aims at creating a single market for all ten Southeast Asian countries, thereby giving them more preferential access to member markets and promoting their presence at the markets. The TPP agreement is deemed as "the 21st century trade agreement" with large coverage, requirements for full liberalisation as well as regulations ensuring a stable and favourable business environment for investors. Specifically, … [Read more...] about Restructuring credit institutions top priority

Staff at Vietinbank's Ha Noi branch count money. In order to hold 10 per cent of the charter capital of a Vietnamese credit institution, foreign investors must meet certain conditions, following the State Bank of Viet Nam's draft decree. — VNA/VNS Photo Tran Viet HCM CITY (VNS)— The State Bank of Viet Nam's draft decree that includes strict requirements and conditions for share acquisitions could see mixed responses from foreigners who want to invest in credit institutions. Under the draft decree, in order to hold 10 per cent of the charter capital of a Vietnamese credit institution, foreign investors must meet certain conditions. They must have minimum total assets of US$10 billion if they are foreign banks, foreign financial companies or foreign financial leasing companies.If they are foreign investors in other sectors, they must have a prescribed capital of $1 billion or more in the year preceding the year of registration of share purchases.They are also … [Read more...] about Credit institution investment rules to be tightened